Empirical Analysis On Effects Of Diversification Strategy Of Chinese Real Estate Listed Corporations

Real estate is one of the most basic elements of human production and life, so is one of the major pillar industries of the national economy. In recent years, the ever-changing market environment of the real estate industry, enhance uncertainty of business; severe macroeconomic regulation,the increasingly fierce competition, causes the management difficult day by day; great potential demand, good industry average profit, lets many enterprises be eager to try. How to compete with real estate speculators at home and abroad at the same stage? How to be t he final winners after experiencing the strategic turning point? Whether to choose the diversification strategy, what is the degree of diversification? The author hopes to make some meaningful exploration through research for this article.This article combines literature research method, regression analysis, comparison method and other methods. On the basis of the findings from scholars by studying and learning related literature, we select real estate companies as research samples. The article hopes to find out the relationship between diversification strategy and business performance in a particular industry through the research on specific industries. Finally make some degree of significance to listed real estate companies or all real estate companies with similar asset and skills.The article select the Herfindahl index as a measure of diversification, select Tobin’s Q,ROE,DR,RRG as a measure of performance indicators. The article measures the relationship between diversity and business performance from three dimensions--the different year, the overall sample and the segmentation sample, the market indicators and financial indicators.By thinking about the industrial characteristics of the sample and the conclusions of research, the article insists on taking a single product or moderate diversification strategy. At last, the article gives several suggestions on company’s product line, financing and construction of standardized production system. The logical of the article is as follows:the1st chapter describes the background, the meaning purpose of the study, and research methods, and so on. The2nd chapter introduces a definition of diversification, the classification, the motivation, positive and negative effects and related research findings of scholars of diversification. The3rd chapter mainly on different measurements of diversification, performance measurement indicators, control variable, model and so on. The4th introduces how to select the sample and sample’s Descriptive statistics.The5th chapter is mainly on the results of research, including descriptive statistics results and empirical findings. The6th chapter gives the conclusions and recomm endati ons. The innovation and weakness:In the past, scholars tend to select listed companies or private listed company sample as a whole for the study. In the article, it’s focuses on diversification issues in listed real estate companies And few similar researches are seen in this field in China. Besides this article evaluate corporate performance from a more overall viewpoints which make up for the simple use of market data or financial data.Because of the limited of the author’s ability, the article also exist a number of shortcomings, such as small sample size, find no match control variables to measure the objective environmental indicators and so on.